Introduction
Despite the fact that the world is changing at record speed, many organizations still lead out of habit, old truths and an excessive focus on management – where governance, control and transactional leadership dominate.
Consequently, success in these environments is often measured in short-term outcomes and regulatory compliance, rather than in engagement, innovation, and long-term development.
But in a time when employees are looking for meaning, participation and opportunity to grow, it is no longer enough to just administer and manage.
Transformational leadership offers an alternative – a leadership style based on inspiration, trust and shared values, and that creates organizations ready for the challenges of the future.
In this article, you will get answers to questions such as:
- What is transformational leadership and how is it different from transactional leadership?
- What are the characteristics of a transformational leader?
- What are the biggest advantages – and pitfalls – of this leadership style?
- How can you start developing more transformational leadership in your everyday life?
What is transformational leadership?
Transformational leadership is a model where the leader not only steers with instructions, but also inspires, motivates and makes visible a common vision that the whole team is working towards.
In contrast to more traditional, transactional, or authoritarian leadership styles, transformational leadership focuses on developing employees, encouraging creativity, and strengthening engagement.
A key characteristic of a transformational leader is that he/she acts as a role model by living by the values and goals on which communication is based.
Furthermore, the manager takes responsibility for both the personal meeting and the long-term results. Employees feel seen, get to be involved in change work and are given room to grow both individually and as a group.
Transformational leaders lead with vision, trust, and commitment to create motivated teams and sustainable results.
The Four Pillars of Transformational Leadership
Transformational leadership rests on four pillars, often referred to as the “four I’s”:
- Idealized influence – The leader acts as a moral role model and builds strong trust and respect.
- Inspirational motivation – He or she creates context and highlights clear visions and goals, which contributes to a common purpose.
- Intellectual stimulation – Employees are challenged to think outside the box and actively participate in improvement work. New ideas and innovations are encouraged.
- Individual care – The leader offers support and coaching, adapted to each individual, and ensures that everyone has the opportunity to contribute based on their unique strengths.
It is the collaboration between these aspects that makes the difference for both the work environment and results in the organization.
The difference with transactional leadership
Transformational leadership contrasts with several other styles. The most obvious comparison is with transactional leadership, where the “give and take” relationship dominates (reward versus performance).
In a transformational context, the focus is instead on development and long-term growth.
Many people who are initially sceptical of transformational leadership refer to the fact that it requires a lot of time, presence and emotional energy from the manager.
In addition, research shows that the effects on well-being and performance often weigh more heavily in the long term.
Why are transformational leaders needed today?
The world is changing rapidly – technologically, culturally and organisationally. Employees are no longer just looking for security and pay, but meaning, development and authentic relationships.
Thus, transformational leadership becomes a key to creating sustainable, resilient and innovative organizations via transformational leaders.
Several trends are driving the need for new leadership styles, and traditional companies and authorities in particular are transitioning to flexible, digital organizations. Studies show that companies with transformational leaders experience increased innovation capacity, stronger engagement, and better employee well-being.
In rapidly changing environments, this enables you to adapt more quickly to market demands and to develop sustainable solutions.
In addition, younger generations, such as millennials and Generation Z, require leaders who dare to provide trust, feedback, and support for personal development – rather than just control and follow-up.
Transformational Leadership:
Strengthens engagement and loyalty
Promotes creativity and collaboration
Building a culture where people dare to grow
But what does it really mean to be a transformational leader? And what qualities are required to really make a difference?
What are the characteristics of the transformational leader?
A transformational leader is characterised by the ability to inspire and motivate employees to develop themselves and achieve common goals. Here are seven specific characteristics that distinguish a transformational leader:
- Open
Transformational leaders are constantly open to innovation. They are constantly looking for opportunities to do things differently and are always open to new ideas, no matter where those ideas may arise.
- Visionary
Transformational leaders have a clear vision and communicate it clearly to their employees. In addition, they have the ability to look ahead and can identify what changes need to be made to achieve the vision.
- Empathic
Transformational leaders are empathetic and understand the needs and feelings of their employees. They listen actively, with the intention of understanding, and take into account the opinions and experiences of employees.
- Coaching
Transformational leaders coach and help employees develop their skills and achieve their goals. They provide support and encouragement, while challenging employees to take responsibility for their own development.
- Inspiring
Transformational leaders are inspiring and can enthuse employees to work towards common goals. They communicate their vision in a way that engages employees and creates a sense of belonging and community. - Flexible
Transformational leaders are flexible and adaptable. They have the ability to handle changes and challenges effectively and can adapt to different situations and requirements.
- Idealistic
Transformational leaders have high ethical ideals and act as role models for employees. They do the right things and have a strong sense of integrity and fairness.
In conclusion, a transformational leader is an inspiring and coaching leader who has a clear vision and is empathetic, flexible, and idealistic. By activating these behaviors, a leader can develop a strong and effective leadership style that helps employees develop their skills and achieve common goals.
Benefits, pitfalls, and risks of transformational leadership
Benefits
Research and case studies point to several clear benefits. Among other things, this leadership style leads to:
- Higher motivation and commitment of the individual.
- Increased psychological safety, which unleashes creativity and innovative power.
- Higher flexibility and ability to manage change within the organization.
- Better performance and work environment over time24.
Transformational leaders lift the group by reinforcing empathy, self-awareness, and co-creation.
Pitfalls and risks
Transformational leaders who lack a solid foundation in the organization’s values can lose their footing and risk losing trust. If engagement and dialogue are not followed by clear direction and follow-up, the result can be frustrated employees.
In addition, there is a risk that charismatic leaders, without any basis in reality, lead the business astray. Therefore, every manager needs to be aware of both positive and negative sides, and combine transformational leadership with clear follow-up and responsibility for results.
Practical Application: How to Become a Transformational Leader
Taking the step towards a more transformational leadership style means concretely to:
- Put into words what the company’s vision means so that it becomes clear to employees and teams in their everyday lives.
- Give more feedback and coaching instead of instructing.
- Encourage questioning and constructive response to new ideas, even when these do not correspond to one’s own preferences.
- Proactively create forums where everyone can participate, rather than just reporting to management.
- Build relationships based on mutual respect and trust.
A successful example is when the leader actively draws attention to and highlights good initiatives in the team, which increases the sense of participation and trust.
At the same time, it requires courage to use self-reflection and developmental feedback, even when mistakes are made, or goals are not reached.
Closure and exhortation
Transformational leadership is not a “quick fix”, but an ongoing process that requires courage to challenge oneself and one’s routines. The modern workplace requires transformational leaders with the ability to think innovatively, inspire, and take the dialogue further than just production figures.
The next step for those who want to deepen their knowledge can be to reflect on how you use feedback in your own everyday life and investigate where in your team’s innovation could be lifted further.
Do you want to take the next step and become a transformative leader?
Do you want to become the kind of leader that people remember – and follow with joy? Then it’s time to take the next step.
Book a free and unconditional dialogue online with us at Internova. We’ll tell you more about how you can strengthen your leadership – and create a more autonomous and sustainable team around you. CLICK BELOW!
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